A.         Many New Zealanders participate in gambling activities. For some, it may be a once a year flutter on the Melbourne Cup while for others it is a regular activity. Some people find that gambling develops into a serious problem which they are unable to control. This is called ‘compulsive’ or ‘pathological’ gambling. It is recognised as a mental disorder. Their behaviour disrupts and damages personal relationships and also causes problems at work and financial crises. It can lead to criminal activity to get more money, leading into more intense gambling behaviour. 

 

According to Gambling Helpline NZ “Compulsive gamblers often believe that money causes, and at the same time is the solution to all their problems. They make no serious attempt to budget or save money, and are often over-confident, very energetic, easily bored and often "big spenders". There are times when they show signs of personal stress, anxiety and depression. In fact, many compulsive gamblers report boredom/depression or stress as the main reasons for their gambling.”

 

Gamblers should be encouraged to seek help for their gambling problem. Organisations like Gambling Helpline NZ and the Problem Gambling Foundation help not only gamblers themselves, but people living with them or affected by their gambling habit.

 

It is not easy to withdraw funds through a KiwiSaver Significant Financial Hardship or SFH application.   The applicant has to provide evidence that the hardship is severe, and they have exhausted other avenues of help. If approved, the KiwiSaver fund manager will pay the funds out to the bank account as requested by the applicant. The applicant can ask that the funds go directly into paying off debt but they have to organise this with the lender. If a person has a gambling problem, they are unlikely to set this up unless they are actively working to deal with their gambling problem.

 

I asked Vedran Babich Operations Manager for Fisher Funds Management to comment on this type of situation. He replied “This has been an issue that has been discussed at industry workshops in recent times however no real progress has been made to change the existing legislation, which doesn’t allow us to impose this requirement on members eligible for a Significant Hardship Withdrawal.  We are happy to make a payment to a third party at the member’s request and we have done this on a few occasions in the past.  Please note that with current Anti Money Laundering legislation we are required to conduct customer due diligence on the party receiving the payment as well as consent from both the member and that third party, which adds to the process.”

 

Fund managers are willing to direct payment to a lender, but they need the co-operation of the member. 

 

If you have not been in contact with one of the organisations offering help for gamblers, get in touch. They are the experts and will provide information and guidance for you. 

 

Published 2 November 2015